Featured Image Credit: Getty Images/Chip Somodevilla
Topics: Business, Donald Trump, Money, News, Tariffs, Technology, US News, Walmart
Niamh Shackleton
Topics: Business, Donald Trump, Money, News, Tariffs, Technology, US News, Walmart
Donald Trump's tariffs are having devastating effects on businesses in the US.
Earlier this year, Trump announced a series of new tariffs on countries across the globe, including the Heard Island and McDonald Islands — one of the most remote places in the world, where only penguins and seals live.
As a result of these controversial hikes, experts and businesses have warned that Americans are likely going to have to fork out more cash than before for everyday items.
In recent days, Walmart warned its customers that it may have to up its prices.
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Walmart CEO Douglas McMillon said: "We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins."
Another company that's spoken out against Trump's hiked levies is Wyze Cam. According to the Washington-based tech firm, it was poised to pay '$255,000 in tariffs and $579.23 in 'other fees' to import $167,000 of Wyze Cams'.
Tweeting this on May 1, the firm proceeded to share a receipt to back its claims.
GlytchTech shared a photo of its DHL invoice as well, with the company being quoted over $2,800 in tariffs on less than $2,000 worth of equipment.
READ MORE:
ALL THE ITEMS THAT'LL COST AMERICANS MORE AFTER TRUMP'S TARIFFS
Adafruit Industries also jumped on the bandwagon and shared a DHL receipt it had received. In a blog post, the company warned that (like Walmart) it may have to up its prices.
"We’re no stranger to tariff bills, although they have definitely ramped up over the last two months. However, this is our first ‘big bill’, where a large portion was subjected to a 125%+20%+25% import markup," Adafruit Industries penned.
"Unlike other taxes like sales tax where we collect on behalf of the state and then submit it back at the end of the month, or income taxes, where we only pay if we are profitable, tariff taxes are paid before we sell any of the products and are due within a week of receipt which has a big impact on cash flow."
It went on: "In this particular case, we’re buying from a vendor, not a factory, so we can’t second-source the items (and these particular products we couldn’t manufacture ourselves even if we wanted to, since the vendor has well-deserved IP protections). And the products were booked & manufactured many months ago, before the tariffs were in place.
"Since they are electronics products/components, there’s a chance we may be able to request reclassification on some items to avoid the 125% ‘reciprocal’ tariff, but there’s no assurance that it will succeed, and even if it does, it is many, many months until we could see a refund."
Elsewhere, customers are already feeling the sting. One guy shared a screenshot of an order he'd placed for a Radxa Orion O6. He claimed that in December, the piece of tech was $300, but it's now five times the price.